The U.S. Core PCE Price Index, the Federal Reserve’s preferred gauge of underlying inflation, eased slightly to 3.0% year-over-year in February 2026, down from 3.1% in January 2026. The latest figure, updated on 09 April 2026, points to a continuation of the gradual disinflation trend despite price pressures remaining above the Fed’s 2% target.
On a year-over-year basis, the February reading compares the change in prices to the same month a year earlier, while January’s previously reported 3.1% figure reflected the change relative to January of the prior year. The modest step down in annual core inflation suggests underlying price growth is cooling, but only slowly, keeping the trajectory of future monetary policy decisions in focus for markets and policymakers alike.
